Morning Commentary: Pipeline fills; Boeing, MasterCard, Motorola, Ryder, others offer notes

By Cristal Cody

Tupelo, Miss., Feb. 21 – After a few issuers stood down on Tuesday, the deal pipeline filled quickly early Wednesday with six reported investment-grade issuers planning to price U.S. dollar-denominated bonds.

Boeing Co. plans to bring $1.4 billion of senior notes in four tranches.

MasterCard Inc. is on deck with an offering of notes.

Motorola Solutions, Inc. is offering senior notes.

Western Gas Partners, LP intends to price 10- and 30-year senior notes.

Ryder System, Inc. is marketing medium-term fixed-rate notes.

In the SSA space, Bank Nederlandse Gemeenten NV is expected to price a benchmark-sized dollar-denominated offering of two-year notes.

The notes due Feb. 28, 2020 were initially talked to price with a spread in the mid-swaps plus 5 basis points area, according to a market source.

Also, Quebec announced an offering of series QT Canadian dollar-denominated global notes. The Canadian high-grade market has been quiet for more than a week with no new issuance, according to a syndicate source on Tuesday.

In other deal activity, the Bank of England is marketing a benchmark-sized U.S. dollar-denominated offering of three-year notes that is expected to price sometime in the near horizon.

On Monday, three corporate issuers tapped the high-grade bond market.

Light U.S. high-grade supply is expected for the week with some market sources predicting as little as $10 billion of volume and others up to about $20 billion of bond issuance.

Elsewhere during Wednesday’s session, market sources were looking toward the release of the minutes from the Federal Reserve’s January policy meeting and any discussion of the tax bill’s impact on the economy.

The three-month Libor yield rose 1 basis point to 1.89% on Wednesday, according to a market source.

In secondary trading, Tuesday closed out with $16.55 billion of high-grade bond volume, according to Trace.

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